While bonded titles are often given to individuals, there are times when businesses might need them, too.
They are used in conjunction with the purchase of motor vehicles. While many companies purchase entire fleets through dealers when they use vehicles in delivery or other aspects of the business, there may be times when they buy a single vehicle through another avenue to save money.
If they make the purchase through an individual, there may be an instance when they must obtain a bonded title.
As the following article shows, there are 4 reasons you might need a bonded title when you buy a vehicle for your business….
Registering the Vehicle
Many times people donate old vehicles to organizations as a tax write-off.
If you received the vehicle but no transfer of title, you will need to get a bonded title to act as proof of ownership. This may require a notarized statement since you wouldn’t have a bill of sale for a gifted vehicle.
If you bought a vehicle and didn’t receive a title or any type of bill of sale, you will need a bonded title to purchase car insurance. You must be able to prove that the vehicle is yours.
You may be able to use a cancelled check or other receipt showing the purchase to get the bonded title to take to your insurance company.
If you bought a vehicle and lost the title, you may be able to replace it with a bonded title. This would be necessary if you lost the title before you had the vehicle registered.
Once you have the bonded title, you could complete the registration and receive an actual title in your name.
Fraudulent or Inaccurate Title
If you purchased a vehicle that did not belong to the seller or that has inaccurate information on the title you were given, you may be able to receive a bonded title.
Besides allowing you to register your vehicle, a bonded title also protects you if someone claims that the vehicle belongs to them and proves that you received it through a scam. While their title would be honored, the bond company would have to pay for the judgment.
If you discover that you need a bonded title for a vehicle that you purchased, you will need to provide certain documents to receive it.
A bill of sale or receipt showing purchase would be required or some other proof that you are now the owner. You cannot receive a bonded title for an abandoned vehicle.
Each state has its own requirements for what you must provide to show proof of ownership.
If you are not sure of what you need, it is always a good idea to begin with your state’s Department of Motor Vehicles.
You can also talk to the bond company to help you acquire what is necessary so that your business can show ownership of the vehicle you purchased. Buying a vehicle from an individual is a wonderful way to save money, but be prepared for any title issues that may arise.
About the Author: Joyce Morse is an author who writes on a variety of topics, including business and insurance.